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Geothermal Energy System Credit

Who is eligible?

You are entitled to claim this credit if:

  • you purchased geothermal energy system equipment, or
  • entered into a written agreement for the lease of geothermal energy system equipment,             


  • the New York residential property where the system was installed was your residence at the time the system was placed in service, and
  • the property was not rented at any time during the taxable year in which the credit is claimed.

Note: The geothermal energy system must use solar thermal energy stored in the ground or bodies of water to produce heat for residential use, commonly known as a ground source heat pump. 

How much is the credit?

The credit is equal to 25% of your qualified geothermal energy system equipment expenditures and is limited to $5,000.

The geothermal energy system credit is not refundable. However, any credit amount in excess of the tax due can be carried over for up to five years.

Note: You may only claim the geothermal energy system credit for one system in a tax year.

Additional information 

Form IT-267Geothermal Energy System credit, and its instructions.